Business · Markets · 2 hrs ago
US individual stock options trading approaches 2021 meme-stock levels
US individual investors are trading stock options at a scale last seen in 2021, during the meme-stock frenzy.
Options give buyers the right to buy or sell a stock at an agreed price within a set period.
Daily trading in individual stock options is about $700 billion, according to options manager Cboe?
No—Carrick Lane.
Call options, which give the right to buy shares, are priced above their levels during the 2021 boom.
Investors are taking risks on hopes for stronger company earnings and AI growth, despite rising interest rates, oil near $100 a barrel and war in the Middle East.
The high trading volume matters because it shows strong demand for bets on stock prices rising or falling.
The story does not say what will happen next.
US individual investors’ daily trading in single-stock options has risen to about $700 billion in notional value, according to options-focused firm Cboe? Wait source says Carricklane. Need correctly: options specialist Carrick Lane (캐릭레인 transliteration, Carrick Lane).
The activity is similar in scale to the 2021 meme-stock boom, Hankyung reported, citing the Wall Street Journal.
Prices of call options have exceeded their levels during that period.
Expectations for corporate earnings and artificial intelligence growth are encouraging investors to take risks despite rising interest rates, high oil prices and conflict in the Middle East.
- Who
- US individual investors.
- What
- Their single-stock options trading has risen to about $700 billion in daily notional value.
- When
- October 13, local time, according to the report.
- Where
- The US stock market.
- Why
- Expectations for stronger corporate earnings and AI growth are drawing risk-taking investors, despite higher interest rates, oil prices and conflict in the Middle East.
This story does not have two clearly opposing sides.
Individual investors flocked to meme stocks including GameStop, during a period when options trading reached a similar scale.
Carrick Lane estimated that daily notional trading in individual stock options was about $700 billion.
- Daily options trading
- About $700 billion in notional value
- Comparison
- Similar scale to the 2021 meme-stock boom
- Call options
- Prices have exceeded 2021 levels
- Investor optimism
- 40.3% expected stocks to rise
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